Corporate Accelerator 101
/The enterprise is looking to accelerate their innovation programs by following the corporate accelerator model. Accelerators are designed to help corporations identify, select and work with highly differentiated value propositions from the start-up community. Accelerators also help generate considerable market buzz for a company, highlighting their interest in adopting new digital and innovative initiatives.
There are however a few simple questions that need to be answered before implementing an accelerator program, focused particularly around what teams are looking to achieve from such a program. Below are a few areas of focus for any team or individual looking to launch an accelerator program, without getting into the finer details of corporate innovation accelerators.
Operations
Understand the barriers that start-ups face when working with the large enterprise and design easier processes for the accelerator. It’s equally important is creating an environment that drives that innovative mindset for a start-up and filtering it through the enterprise team.
Selection
Bring on participants who are best aligned with your business objectives to maximize your return from an accelerator. Keep in mind that over time, accelerators are known by the start-ups they accept into their program and the outcome of the company after exiting the program.The selection criteria can include:
Age and stage of the company
Demonstrated ability to execute
Team size and experience
Existing client base
Market differentiation
Ability to sell
Business Objectives
What are you looking to achieve out of an accelerator? Specific objectives in make it easier to define the types of technologies and platforms that should be included. A key factor here is that teams need to segregate short-term and long-term business objectives. Profitability should not be an overarching motive, as that can dilute the purpose of the program.
Duration
The time frame of accelerators directly impacts the money that goes into running one, but also what the company can get out of it. You need to determine a duration that enables the enterprise to get the exposure they need while understanding that for start-ups, the program duration is directly related with the value they are looking to extract from a program, determining interest and eventually program success.
Value Proposition
Recognizing and providing what start-ups are looking for in an accelerator is directly co-related to the interest generated by your accelerator. Guidance and mentors are as important as the funding provided, along with access to potential markets and a highly visible position in the tech and corporate community. Designing a lucrative package defines the value of what accelerators provide, translating into enhanced interest.
Core Teams
The size of core teams behind accelerators are not that big, it is the mentors and advisors that make up a bulk of the manpower. Back in 2016, an accelerator in London worked with 200 companies on 3 floors, connecting them with 140 mentors – all with a core team of 9 people. This goes to say that the size of your core team shouldn't be a concerning factor when it comes to operating an accelerator.
Community
Accelerators and start-ups are designed around a community approach to business. Creating and spreading a sense of community through your enterprise, particularly for the accelerator, is crucial to building out a network in the early stage community. Breaking down barriers and silo-ed approaches to business problems is an excellent way to do so.
Locations
While most accelerators are based out of a company’s headquarters, it’s always possible to consider alternate locations that can give you access to technology that hasn’t made its way into your core operating geography. It’s not unheard of large companies setting up innovation “outposts” in locations across Europe and the APAC to harness differentiated innovation popping up across the world.